Local News

Fort Morgan sees sales tax revenue bounce in May

Monthly total for 2017 moves toward 2015 record

By Jenni Grubbs

Times Staff Writer

Posted:
07/20/2017 04:56:24 PM MDT

Cars lining Main Street in downtown and open signs at businesses are always good signs for the city's sales tax revenue levels. The sales tax collected by Fort Morgan businesses in May led to $597,332 being returned from the state to the city that month. (Jenni Grubbs / Fort Morgan Times)

By the Numbers

Fort Morgan monthly sales tax revenue in May:

2017 - $597,332

2016 - $528,415

2015 - $632,766

2014 - $543,932

2013 - $500,109

2012 - $459,187

2011 - $423,358

2010 - $421,475

- Source: Fort Morgan City Treasurer's Office

Fort Morgan's monthly sales tax revenue in May came tantalizingly close to a level not seen since 2015: the $600,000 mark.

The city brought in a total of $597,332 in sales tax revenue in May, according to data from the City Treasurer's Office. That was the highest monthly take so far in 2017 and almost $70,000 more than was collected in the same month last year.

But May 2016 saw the city take in $632,766 in what was a banner year for sales tax collections in Fort Morgan.

Still, things appear to be looking up again on the sales tax front.

"The numbers are looking promising," City Manager Jeff Wells said of the May total.

The May sales tax revenue total is being reported in July because the state initially collects all the 5.9 percent sales tax from Fort Morgan merchants and then returns the city's portion, which is 3 percent of the total. That means the reporting of the local numbers usually is about two months behind.

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Of the overall city sales tax revenue, two-thirds goes to Fort Morgan's general fund and the many city departments it supports, such as parks, recreation and police. The other third is specifically designated for capital improvement projects and purchases, such as improvements to roads and buying library books.

"This is a very important source of revenue for the city," City Manager Jeff Wells previously said of sales tax revenue.

Overall, the city collected nearly $2.7 million in the first five months of 2017. That is $147,065 more than the city got in that time period of 2016.

The city is working to try to keep that upward direction going with sales tax returns, Wells said.

"We continue to focus a lot of effort on economic development," he said. "We continue working with Retail Coach to expand retail opportunities and offering in Fort Morgan and to capture leakage and fill the closed and soon-to-be closed businesses."

But there are some challenges for this, such as having enough housing to be able to attract new businesses and employers that would then need ways to bring enough workforce to the area beyond what is already here.

"One of the constricting points we find right now in expanding our tax base is housing," Wells said.

But the city is looking for ways to encourage more housing to be built in the Fort Morgan area, he said.

If that happens, then it could get easier for Fort Morgan to bring in more businesses, whether primary employers, large retail or small retail, as well as offering more labor options for the existing businesses in the city. In turn, that could lead to higher sales tax revenue, both from more businesses and from more people buying things and spending money locally.

The total budget projection for sales tax revenue this year was set at $5.65 million, which would be about $720,000 less than the nearly $6.37 million total sales tax revenue the city collected in 2016. Any revenue collected beyond what was budgeted for projects and purchases goes into the city's reserve funds.

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